VanEck’s Spot Bitcoin ETF Sees Surge in Trading Volume
The spot Bitcoin ETF offered by VanEck has experienced a significant increase in trading volume, surpassing $300 million. This is more than ten times higher than its previous best trading day. On its launch day, the ETF reached a daily trading volume of $25.5 million.
Senior ETF Analyst at Bloomberg, Eric Balchunas, expressed surprise at the surge in trading volumes seen with certain spot Bitcoin ETFs recently.
The VanEck Spot Bitcoin ETF Leap
The VanEck spot Bitcoin ETF has witnessed unprecedented figures, with over thirty thousand trades taking place.
Balchunas noted that the trading volume for the “$HODL” ETF had reached $258 million, which is 14 times its daily average. What surprised him even more was that this surge was driven by 32,000 individual trades, 60 times more than usual.
$HODL is going wild today with $258m in volume already, a 14x jump over its daily average, and it's not one big investor (which would make sense) but rather 32,000 individual trades, which is 60x its avg. Not sure how to explain.. maybe it was added to a platform over wknd ? pic.twitter.com/VTkjboS0ff
— Eric Balchunas (@EricBalchunas) February 20, 2024
Balchunas speculated on the reasons for this sudden spike, considering whether the VanEck spot Bitcoin ETF was added to a new platform over the weekend. He also mentioned the unusual scenario where the daily trading volume surpassed the total assets of the ETF, suggesting a significant influx of new investments.
Over the weekend, VanEck submitted its S1-A form to the United States Securities and Exchange Commission (SEC), advancing its proposal for a spot Ethereum ETF.
Bitcoin Price Forecast
Balchunas questioned attributing this surge to selling due to a decline in Bitcoin’s price, as it overlooks the diverse range of Bitcoin holders beyond ETFs. He highlighted that Bitcoin had recently rallied by 20% and was only down 1%.
Cryptocurrency analyst Michaël van de Poppe has forecasted a Bitcoin price surge to $150,000 following a significant correction.
The unprecedented trading surge in these spot Bitcoin ETF products has left analysts and industry observers puzzled. It raises questions about the factors driving this sudden influx of trading activity in the crypto market. Currently, Bitcoin’s price is up 0.50% to $51,940.94.
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